HOUSTON, TX – According to executives at Conoco Phillips, Texas could become the world’s second largest oil producer by the end of the year.
Greg Leveille, manager for technology program-unconventional reservoirs at Conoco, told folks at a conference in San Antonio that he expects Texas oil production to reach as much 3.4 million barrels a day by the end of the year.
That’s more than every other OPEC nation in the world except Saudi Arabia. And it could mean billions for the Texas economy. If it’s true.
One energy expert is not so sure.
“3.4 million barrels a day? That’s a bit aggressive,” Barbara Shook with Energy Intelligence Group suggests, “because Texas just climbed above 2 million barrels per day late last year.”
Conoco says the boom is due mostly to shale production in south Texas and out west in the Permian basin; but with such lofty predictions, market analysts wonder just what’s included in that 3.4 million figure.
“What kinds of barrels are being counted?” Shook asks. “Is this strictly crude oil? Or does it contain other sorts of liquids such as natural gas liquids, propane, butane, ethane, natural gasoline?”
How ever you count it, oil and energy is as good as cash around these parts as long as you don’t spill it in the gulf of Mexico. Right?